Design Thinking - Bootcamp

1. Design Thinking Bootcamp (2-3 days) Selected slides for a typical professional training

2. Continuous Innovation ≠ Quick Win This slideset is an exemplarily excerpt of short input presentations given in my design thinking and innovation management trainings. In the light of design thinking’s current hype I share them with the hope that it is being understood better and becomes a more widespread and accepted way of innovating – without the disappointments that exaggerated expectations may bring along. If you’re interested in professional training and strategy advisory (also beyond design thinking) you’ll ﬁnd my contact data here. I facilitate all training formats in cooperation with experienced DT coaches (e.g. d.School Potsdam and IDEO alumni).

3. Design Thinking Bootcamp: Day I Experience the basics of design thinking

4. 1 The future is best found in the opportunities that go unnoticed in the present. Peter Drucker „“

5. 5Source: http://commons.wikimedia.org/wiki/File:Teststrecke_Roller_Coaster.JPG How your journey may feel …

6. Everything that needs to be said has already been said. But, since no one was listening, everything must be said again. André Paul Guillaume Gide (French author and Nobel Prize literary) „ “ 7 It’s a way of designerly (entrepreneurial!) doing and thinking which can be seen as »innovator’s common sense« There is nothing new about “Design Thinking”

7. The Basics »Design thinking« its origin, nature and use. IN PU T Image Credit: New Bauhaus Chicago; Stefanie Di Russo (ithinkidesign.wordpress.com), PhD/Researcher at Swinburne University, Melbourne, Australia

8. 9 Design thinking in the media – a sketchy view Place - People - Process ‣ Heavy collaboration in multi-disciplinary teams ‣ Space as catalyst ‣ Culture of visualization and prototyping ‣ Radical user perspective ‣ Heavy use of sticky notes … Source: http://www.ftd.de/karriere/management/:design-thinking-kreativ-um-die-ecke-gedacht/50171916.html

12. design is to design the design of a design. What is »Design«? cited after John Heskett (former Chair Professor Design, Hong Kong Polytechnic University); adapted from Hardt, M. (2006). Design: The Term Design. Lecture presented at University of Lapland, Rovaniemi Finland. (www.michael-hardt.com/PDF/lectures/design-deﬁnition.pdf) a general concept or policy 1 an activity 2 a plan or intention 3 a ﬁnished outcome (system, service or product) 4 noun verb noun noun 10

13. value creation + value capture Design Thinking: Why the sudden Interest? 11 doing the right thing problem ﬁnding doing the thing right problem solving Fundamental cultural differences …

14. value creation + value capture Design Thinking = Strategic Thinking 12 The Efficiency Movement: Outsourcing, Total Quality Management (TQM), Six Sigma, Lean Manufacturing, Maximizing Return on Assets, Corporate Redesign, Market Segmentation, Licensing, Line Extensions & Diversification, etc. doing the right thing problem finding doing the thing right problem solving

15. value creation + value capture Design Thinking = Strategic Thinking 13 doing the right thing problem ﬁnding doing the thing right problem solving Design is the one business discipline whose primary concern is innovation. When design thinking becomes a core competency, companies become more nimble in the face of rapidly changing markets and new competition. adapted from Bernhard Roth (Academic Director, d.school Stanford)

16. value creation + value capture = advantage Value migration and the shift to a »value creation economy« Design Thinking = Strategic Thinking 14 doing the right thing problem ﬁnding doing the thing right problem solving

17. Value migration and the shift to a »value creation economy« Design Thinking = Strategic Thinking 15 doing the right thing problem ﬁnding doing the thing right problem solving Design Thinking Lean Start-up Agile Execute: Classic Lean

18. value creation + value capture = strategy Design Thinking = Strategic Thinking 17 doing the right thing problem ﬁnding doing the thing right problem solving

19. Design Thinking = Strategic Thinking 17 doing the right thing problem ﬁnding doing the thing right problem solving

20. Mystery Heuristic Algorithm Code Strategic Thinking and the »Knowledge Funnel« 01100111001 doing the right thing problem ﬁnding doing the thing right problem solving

21. 19 Embracing and living a »d.mindset« is the first step - and as we think, perfect prerequisite - to successfully understand and apply lean start-up principles and agile development methods. Image Credit: Nordstrom Innovation Lab (https://secure.nordstrominnovationlab.com/pages/our_process_told_as_our_team_s_timeline)

22. 20Image Credit: DT Venn Diagram, Stanford d.School

23. 20 Design is the expert discipline for relating and connecting floating fields. Wolfgang Jonas (1999) „“ Image Credit: DT Venn Diagram, Stanford d.School

24. 21 People & Human Values Usability & Desirability Technology Feasibility Business Viability Design Thinking and Value Creation

25. 21 People & Human Values Usability & Desirability Technology Feasibility Business Viability Design Thinking and Value Creation Emotional Innovation: User Interaction and Interface, Relationships, Marketing Functional Innovation: Organisational Behavior Marketing & Branding Process Innovation: Manufacturing

26. 21 People & Human Values Usability & Desirability Technology Feasibility Business Viability Design Thinking and Value Creation Emotional Innovation: User Interaction and Interface, Relationships, Marketing Functional Innovation: Organisational Behavior Marketing & Branding Process Innovation: Manufacturing =VALUE INNOVATION EXPERIENCE INNOVATION

29. The Solar Bottle Bulb has been installed to provide ~55 watts of light The Solar Bottle Bulb has been installed to provide ~55 watts of light JaipurKnee High Performance: Blends gait stability with a natural swinging motion Affordable: One tenth the cost of comparable polycentric knee joints Lightweight: 1.5 lb / 0.68 kg High Range of Motion: 165˚ range of motion enabling kneeling and squatting Universal Design: Works with standard prosthetic leg systems including BMVSS and standard pyramid adapter system A Prosthetic Knee Joint for Extreme-Affordability: Long Life Span: Benchtop tested to 3-5 years of use Durable Material: Oil-filled nylon polymer self lubricates with use Simple Geometry: Five plastic pieces and four standard fasteners Takes Inspiration from Biology: Mimics an anatomical knee’s motion The JaipurKnee is a high-performance, low-cost prosthetic knee joint for above-knee amputees. Designed in collaboration with Stanford University and the Jaipur Foot Organization (BMVSS), the JaipurKnee’s polymer-based polycentric design provides a stable gait at a fraction of the cost. SAP Hana Embrace d.light Keep the Change GE MRI Adventure Series Mayo Clinics A Liter of Light JaipurKnee Hippo Roller

30. High Jumps Ship Container vs. Dock Workers GPS vs. Map Navigation Hilti Nintendo Wii Godrej chotuKool Memory Stick vs. Punched Tape Wikipedia vs. Encyclopedia Fluorescent »Computer Furniture« Paradigm Shifts, Market Disruptions and Competitive Advantages

31. 25 Design-led Innovation Shared values and principles of a d.culture … IN PU T http://online.wsj.com/article/SB10001424127887324744104578475220275737136.html

32. 26 inside » « outside Perceived Customer Value = Functional Benefits – Financial Cost TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies? What is our current business model? What else could we oﬀer? What other channel could we use? What customers would we sell to? adapted from Peer Insight. (2007). Seizing the White Space: Innovative Service Concepts in the United States, Technology Review. Study, Helsinki: Tekes, the Finnish Funding Agency for Technology and Innovation. 1: Have an Outside-in Mindset

33. 26 inside » « outside Perceived Customer Value = Functional Benefits – Financial Cost TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies? What is our current business model? What else could we offer? What other channel could we use? What customers would we sell to? CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN What business design would create defensible profits? What customers do we want? What are their priorities? What do we need to execute that design? What could we offer? What ecosystem exists to meet those priorities? Perceived Customer Value = Emotional Benefit – Hassle Factor adapted from Peer Insight. (2007). Seizing the White Space: Innovative Service Concepts in the United States, Technology Review. Study, Helsinki: Tekes, the Finnish Funding Agency for Technology and Innovation. 1: Have an Outside-in Mindset

34. 27 1: Have an Outside-in Mindset Mintzberg, H., Ahlstrand, B., & Lampel, J. (2001). Strategy Safari: A Guided Tour Through The Wilds of Strategic Mangament. New York: The Free Press. The ten Schools after Mintzberg Strategy Formation as … Inherent in DT The »Design School« Process of Conception  The Planning School Formal Process  The Positioning School Analytical Process The Entrepreneurial School Visionary Process The Cognitive School Mental Process The Learning School Emergent Process The Power School Process of Negotiation The Cultural School Collective Process The Environmental School Reactive Process  The Conﬁguration School Process of Transformation

35. 27 1: Have an Outside-in Mindset Mintzberg, H., Ahlstrand, B., & Lampel, J. (2001). Strategy Safari: A Guided Tour Through The Wilds of Strategic Mangament. New York: The Free Press. The ten Schools after Mintzberg Strategy Formation as … Inherent in DT The »Design School« Process of Conception  The Planning School Formal Process  The Positioning School Analytical Process The Entrepreneurial School Visionary Process The Cognitive School Mental Process The Learning School Emergent Process The Power School Process of Negotiation The Cultural School Collective Process The Environmental School Reactive Process  The Conﬁguration School Process of Transformation EMERGENT STRATEGY THINKING

36. 1: Combine Outside-in & Inside-out 28 Identify Business Develop Technology Create Concepts Fit them to Users Understand Users Create Concepts Build Business Develop Technology 1 2 3 3 2 1 Innovating with push (proposing) and pull (exploring) CONNECT adapted from Vijay Kumar: Business & Technology-driven Innovation vs. Design Thinking

37. 2: Use Empathy for Users & Stakeholders 29 Desirability Feasibility Viability

38. 2: Use Empathy for Users & Stakeholders 29 Desirability Feasibility Viability What can be done in terms of capabilities and technology? What can be ﬁnancially viable? Start What is it, people desire? Solution

39. 30 3: Embrace Diversity and Multi-disciplinarity

40. 3: Embrace Diversity and Multi-disciplinarity after Bill Moggridge, Interaction Design Professions Physical Design Digital Design Human&Subjective Technical&Objective GRAPHIC DESIGN HUMAN SCIENCES INDUSTRIAL DESIGN INTERACTION DESIGN WEB DESIGN H.C.I. PHYSICAL SCIENCES MECHANICAL ENGINEERING PRODUCTION ENGINEERING HARDWARE ENGINEERING SOFTWARE ENGINEERING COMPUTER SCIENCES 31

41. 4: Think holistically and systemic 32

42. 3 5: Generate many, many, many ... new Ideas 33

43. 6: Find and Iterate Alternative Solutions 34 Iterations Alternative Solutions

44. 35 6: Find and Iterate Alternative Solutions = Market Definition Market Business Industry Z Industry Y Industry X Customer Groups Alternative Solutions Customer Functions after Abell, D. F. (1980). Defining the Business - The Starting Point of Strategic Planning. NJ: Englewood Cliffs.

45. Planning & Development Procurement & Production Test, Delivery & Launch 7: Fail early, Fail often – But: Fail smart! 36 COSTSOFERRORS PROJECT PROGRESS Test & Iterate: Num ber of Errors Cost per Failure Danger: Post-decision dissonance! »Sunk cost fallacy« Learn here! Too late!   

46. Return Time 7: Fail early, Fail often: Design’s Impact on Innovation ROI 37 -€ +€ Investment/Return Image Credit: Charles Owen (1998) Investment

47. 38 8: Make conscious Use of Space LaunchLabs, Berlin (www.launchlabs.de)

48. HUMAN CENTERED BIAS TOWARDS ACTION SHOW DON’T TELL CRAFT CLARITY RADICAL COLLABORATION CULTURE OF PROTOTYPING & EXPERIMENTATION MINDFUL OF PROCESS 39 The famous D.Mindset Image Credit: D.Mindsets, d.School Stanford (dschool.stanford.edu)

49. meth·od·ol·o·gynoun /ˌmeTH#ˈdäl#jē/ methodologies, pluralThe system of principles, practices, an procedures applied to any specific branch knowledge 41 Process, Toolset, Method or what? Annoying discussions around a methodology. IN PU T

50. Convergence-Divergence ID.IIT: Analysis-Synthesis Engine Service Design (UK) »Design Chaos« Spirit of Creation (UK) St. Gallen d.school Potsdam IDEO (Educators Toolkit) d.school Stanford Beckman & Barry Bill Moggridge Stanford’s d.Modes Jeanne Liedtka and Tim Ogilvie Stanford’s Necktie Flare ID.IIT: Vijay Kumar 42 ! Diamond 1: Direction setting Diamond 2: Service design Diamond 3: Service production Create SelectInitiateInitiate Create Select Define Define Sustain Vision Document Service Blueprint Create SelectInitiate Define Assimilating Converging Diverging Accommodating Active Experimentation Abstract Conceptualization Concrete Experience Reflective Observation Imperatives Problem Finding Solution Finding Problem Selecting Solution Selecting SolutionsObservations Frameworks etc. No Need to fear the »Model Mayhem«! ABSTRACT CONCRETE DISCOVERY INTERPRETATION IDEATION EXPERIMENTATION EVOLUTION

51. ANALYSIS-SYNTHESIS CONVERGENCE-DIVERGENCE RE-ENTRY POINT CONCRETE-ABSTRACT Most Common Generic Models of Creative Thinking 43 S2 S4 S5 S6S3S1

52. 44 OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND PROBLEM SPACE EXPLORATION SOLUTION SPACE EXPLORATION

53. SOLUTION SPACE EXPLORATION OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND Empathize Explore ExecuteRe-Frame Talk to Experts Research Experience Immerse Observe Engage Share Synthesize Point of View Brainstorm Visualize Prototype Insight Big Idea Sticky Takeaway PROBLEM SPACE EXPLORATION The most popular Design Thinking Process Representation

54. OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND Divergence-Convergence Model “solving” “solving”“seeking”“seeking” PROBLEM SPACE EXPLORATION SOLUTION SPACE EXPLORATION Initial understanding of problem increasing complexity increasing certainty Problem deﬁnition: “reframing”

55. Analysis-Synthesis Bridge Model 47after Dubberly, Evenson & Robinson (2008) Analysis (think) Concrete Abstract Synthesis (make) What »is« Model of what »is« Model of what »could be« What »could be« distilledto suggest manifestas Existing – Implicit (Current) Preferred – Explicit (Future) Frameworks Imperatives SolutionsObservations Problem Space Solution Space

56. Analysis-Synthesis Bridge Model 48after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations OBSERVE IDEATE PROTOTYPE TEST POINT OF VIEW

57. Analysis-Synthesis Bridge Model 48after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations OBSERVE IDEATE PROTOTYPE TEST POINT OF VIEW Solution Selecting Problem Selecting Solution Finding Problem Finding

58. Analysis-Synthesis Bridge Model 49after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations

61. Analysis-Synthesis Bridge Model 50after Owen, Kumar (ID.IIT) Analysis (think) Concrete Abstract Synthesis (make) Frameworks Imperatives Solutions OBSERVATIONS PRINCIPLES PLANS TESTS Observations Express Test Cycle Academic Isolation slavishly user-centered cloud-cuckoo-land

62. 51 Design as … Example Problem Framing Design redeﬁnes the challenges facing the organization. Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool Problem Solving Design ﬁnds new opportunities by solving existing problems. The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle Form, Feature & Function Design makes things work better than they did before. Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel Style Design is the avenue to being hip and cool. Target Microsoft Zune Apple Product Identity Media Markt Private Labels No Conscious Design Design has no perceived value for the organization. German Elster Tax Declaration Software TV Remote Controls Design Maturity Stages: Adapted from Steve Sato (former HP), Rosa Wu and Jess McMullin (Ambidextrous Magazin 2006-2)

67. 51 Design as … Example Problem Framing Design redeﬁnes the challenges facing the organization. Umpqua Bank Apple iPod/iPhone/iTunes-Ecosystem DesigningOutCrime Sydney Nintendo Wii SAP HANA Godrej chotuKool Problem Solving Design ﬁnds new opportunities by solving existing problems. The Transtrap Kickstart Irrigation Pumps Pangea Organics Packaging Digital Rights Management OXO Good Grips Aquaduct Tricycle Form, Feature & Function Design makes things work better than they did before. Gillette Mach 3 Razor Nokia Mobile Phones Acer Computers Hewlett Packard Devices iPod + Wheel Style Design is the avenue to being hip and cool. Target Microsoft Zune Apple Product Identity Media Markt Private Labels No Conscious Design Design has no perceived value for the organization. German Elster Tax Declaration Software TV Remote Controls Design Maturity Stages: Adapted from Steve Sato (former HP), Rosa Wu and Jess McMullin (Ambidextrous Magazin 2006-2) Competitive Advantage Decades Years Quarters Months z

68. Large Scale Systems Systems and Behavior Artifact and Experience Artifact 52

71. Large Scale Systems Systems and Behavior Artifact and Experience Artifact 52 the clay street project

72. Large Scale Systems Systems and Behavior Artifact and Experience Artifact 52 the clay street project

73. Large Scale Systems Policy Design, Systems Design, Infrastructure, Public Service, Environment System Systems and Behavior Urban Planning, Architecture | Service Design, Strategic Design | Culture Service Artifact and Experience Engineering, Interaction Design, HCI, User Experience, Anthropological Design, HCD Object Artifact Product, Interior | Fashion, Jewelry | Graphic, Digital Media Pyramid of Design Thinking Practice 53 The Pyramid of DT practice: adapted from Stefanie Di Russo (PhD), Swinburne University, Australia LOW HIGH Level of Complexity

74. Customer Discovery + Problem Discovery + Working Culture + Structured Unstructured Process + Sanity and Reason = Design Thinking 54

75. Activity Insights Need Statement Interview People Objects Environments Messages Services User Experience Physical Cognitive Social Cultural Time 3 Empathize Know thy users and stakeholders! IN PU T

76. Image Credit:Tom Fishburne (http://tomﬁshburne.com)

77. Directly witnessing and experiencing aspects of behavior in the real world is a proven way of inspiring and informing [new] ideas.The insights that emerge from careful observation of people's behavior […] uncover all kinds of opportunities that were not previously evident. Jane Fulton Suri (2005) http://www.thoughtlessacts.com „ “ 4

78. 5 Use, Usability and Meaning Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

81. 6 Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html) Jobs-to-be-done are complex constructs … Use, Usability and Meaning

82. 6 Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html) Jobs-to-be-done are complex constructs … Use, Usability and Meaning

83. 7 Jobs-to-be-done are complex constructs … Use, Usability and Meaning Use Usability Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

84. 8 Jobs-to-be-done are complex constructs … Use, Usability and Meaning Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

85. 8 Jobs-to-be-done are complex constructs … Use, Usability and Meaning Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html)

86. Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc 5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu operation. The shell is sometimes cracked with a small stone and the hulls picked off but often they are moved by the teeth of the women. This woman was probably seventy-five or -eight years of age, yet she was removing the shells with her teeth which were absolutely perfect. duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco) Baskets used in the preparation of mush and bread from the acorn. These Indians are the expert basket makers now living and their baskets demand high prices. After the acorns are d into meal a mound of white sand is built about eighteen inches in height for feet in ter, flattened at the top and hollowed out. A cloth is spread over this, the acorn flour buted evenly around and covered with small fir boughs. During this time a number of stones have been heating in a nearby fire. Water is placed in one of the baskets and heated se stones until moderately hot when the water is poured through these fir boughs onto the or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is ughly leached the meal is placed in another basket and it is filled with water and boiled by erring these hot rocks to the basket and reheating them as fast as they are cooled by the This is kept up until it is thoroughly cooked. Enough is cooked to last the family about a or ten days. The mush is kept in a basket. From meal to meal a portion is dipped out into a er basket and reduced to a thin gruel or soup, which is eaten in smaller baskets. 9 Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html) Jobs-to-be-done are complex constructs … Use, Usability and Meaning Use Usability

87. Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc 5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu operation. The shell is sometimes cracked with a small stone and the hulls picked off but often they are moved by the teeth of the women. This woman was probably seventy-five or -eight years of age, yet she was removing the shells with her teeth which were absolutely perfect. duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco) Baskets used in the preparation of mush and bread from the acorn. These Indians are the expert basket makers now living and their baskets demand high prices. After the acorns are d into meal a mound of white sand is built about eighteen inches in height for feet in ter, flattened at the top and hollowed out. A cloth is spread over this, the acorn flour buted evenly around and covered with small fir boughs. During this time a number of stones have been heating in a nearby fire. Water is placed in one of the baskets and heated se stones until moderately hot when the water is poured through these fir boughs onto the or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is ughly leached the meal is placed in another basket and it is filled with water and boiled by erring these hot rocks to the basket and reheating them as fast as they are cooled by the This is kept up until it is thoroughly cooked. Enough is cooked to last the family about a or ten days. The mush is kept in a basket. From meal to meal a portion is dipped out into a er basket and reduced to a thin gruel or soup, which is eaten in smaller baskets. 10 Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html) Jobs-to-be-done are complex constructs … Use, Usability and Meaning Use Usability Meaning

88. Reproduced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisc 5. This is [a] Chuckachancy [sic] Indian woman preparing acorns for grinding. Some of t acorns may be seen lying on the platform. Removing the hull of the acorn is a slow and difficu operation. The shell is sometimes cracked with a small stone and the hulls picked off but often they are moved by the teeth of the women. This woman was probably seventy-five or -eight years of age, yet she was removing the shells with her teeth which were absolutely perfect. duced from the archival holdings of the National Archives and Records Administration – Pacific Region (San Francisco) Baskets used in the preparation of mush and bread from the acorn. These Indians are the expert basket makers now living and their baskets demand high prices. After the acorns are d into meal a mound of white sand is built about eighteen inches in height for feet in ter, flattened at the top and hollowed out. A cloth is spread over this, the acorn flour buted evenly around and covered with small fir boughs. During this time a number of stones have been heating in a nearby fire. Water is placed in one of the baskets and heated se stones until moderately hot when the water is poured through these fir boughs onto the or the purpose of leaching out the bitter principle contained in the acorn. As soon as this is ughly leached the meal is placed in another basket and it is filled with water and boiled by erring these hot rocks to the basket and reheating them as fast as they are cooled by the This is kept up until it is thoroughly cooked. Enough is cooked to last the family about a or ten days. The mush is kept in a basket. From meal to meal a portion is dipped out into a er basket and reduced to a thin gruel or soup, which is eaten in smaller baskets. 10 Image Credit: National Archives Record Group 75, Records of the Bureau of Indian Affairs, Sacramento Area Office. Coded Records Relating to Programs and Administration, 1910-1958, Box 44, file "Survey of Fresno and Madera Counties, L. D. Creel, ca. 1920," NARA Pacific Region, San Francisco, USA (http://www.archives.gov/pacific/education/curriculum/4th-grade/acorn-photographs.html) Jobs-to-be-done are complex constructs … Use, Usability and Meaning Use Usability Meaning NEED

89. 11 OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND Expertise Empathy Explore ExecuteRe-Frame UNDERSTAND OBSERVE

90. Empathy: Immerse, Observe, Engage 12 See the world through someone else’s eyes Walk in other people’s shoes Immerse yourself into their experiences Image Credit: © MIT AgeLab, Age Gain Now Empathy System; Photos by Nathan Fried-Lipski

91. Empathy: Methods Triangulation 13 THE RIGHT BALANCE? What people experience. TRY: Immersion Participatory Design What people do. LOOK: Observations Ethnography What people say they do. ASK: Engagement Contextual Interviewing

92. MARKET RESEARCH INSIGHTS RESEARCH The Dispute over Methods 14 Image Credit: after Polaine, A., Løvlie, L., & Reason, B. (2013). Service design: from insight to implementation. (1st ed.). Rosenfeld Media.; Lightbulb Icon → Idea designed by Björn Andersson from The Noun Project 100 People 10 Truths 10 People 100 Insights

93. 16 Image Credit: © MIT AgeLab, Age Gain Now Empathy System; Photos by Nathan Fried-Lipski Experience what your user might experience … Immerse. Observe. Engage.

94. 17 Experience what your user might experience … Immerse. Observe. Engage. Image Credit: © Klara Lindner for Mobisol GmbH Berlin

95. The time, place, conditions, and circumstances within which aspirations are conceived, decisions are made, and product usage takes place have an impact on the levels of satisfaction experienced in the aftermath. Research practice that ignores context is doomed to misunderstanding and misrepresentation. Jane Fulton Suri (2005) http://www.thoughtlessacts.com „ “ 20

96. 22 Be a ﬂy on the wall: The art of unobtrusive research … Immerse. Observe. Engage. Image Credit: © Klara Lindner for Mobisol GmbH Berlin

97. 23 Image Credit: © Klara Lindner for Mobisol GmbH Berlin ARTIFACTS DOING (behavior) SEEING THINKING (framing) WHERE WHEN HEARING INTERACTIONS (services) MESSAGES

98. 23 Image Credit: © Klara Lindner for Mobisol GmbH Berlin ARTIFACTS DOING (behavior) SEEING THINKING (framing) WHERE WHEN HEARING INTERACTIONS (services) Religion: Christian MESSAGES

99. 23 Image Credit: © Klara Lindner for Mobisol GmbH Berlin ARTIFACTS DOING (behavior) SEEING THINKING (framing) WHERE WHEN HEARING INTERACTIONS (services) Religion: Christian Workaround: Beer Cover MESSAGES

100. 23 Image Credit: © Klara Lindner for Mobisol GmbH Berlin ARTIFACTS DOING (behavior) SEEING THINKING (framing) WHERE WHEN HEARING INTERACTIONS (services) Religion: Christian Workaround: Beer Cover Potential »Distribution Partner« MESSAGES

101. People do not always do what you think they do. People do not always do what you tell them to do. People do not always do what they think they do. People do not always do what they say they do. Observation and asking why makes you find out what people really do and need. 23 People say one thing but yet do another Immerse. Observe. Engage. Image Credit: http://images.businessweek.com/ss/06/05/ethnography/image/01_intro.jpg

102. Activity Insights Need Statement Interview People Objects Environments Messages Services User Experience Physical Cognitive Social Cultural Time 24 Advanced ways of structuring your field work Observation Techniques Activity Insights Need Statement Interview People Objects Environments Messages Services User Experience Physical Cognitive Social Cultural Emotional Time POEMS Image Credit - Cultural Probes: Final student project of Helle Rohde Andersen (http://ciid.dk/education/portfolio/idp11/final-projects/seam-city/) Image Credit - WHW, AEIOU: d.school Stanford / Bootcamp Bootleg 2010 Cultural Probes What-How-Why? | | | | During observation mode, What? | How? | Why? is a tool that can help you drive to deeper levels of observation. This simple scaffolding allows you to move from concrete observations of the happenings of a particular situation to the more abstract potential emotions and motives that are at play in the situation you’re observing. This is a particularly powerful technique to leverage when analyzing photos that your team has taken into the field, both for synthesis purposes, and to direct your team to future areas of needfinding. Set-up: Divide a sheet into three sections: What?, How?, and Why? Start with concrete observations: What is the person you’re observing doing in a particular situation or photograph? Use descriptive phrases packed with adjectives and relative descriptions. Move to understanding: How is the person you’re observing doing what they are doing? Does it require effort? Do they appear rushed? Pained? Does the activity or situation appear to be impacting the user’s state of being either positively or negatively? Again, use as many descriptive phrases as possible here. Step out on a limb of interpretation: Why is the person you’re observing doing what they’re doing, and in the particular way that they are doing it? This step usually requires that you make informed guesses regarding motivation and emotions. Step out on a limb in order to project meaning into the situation that you have been observing. This step will reveal assumptions that you should test with users, and often uncovers unexpected realizations about a particular situation. What? | How? | Why? METHOD

103. mework helped researchers do rapid ethnography and work within research parameters pertaining to the topic. Th found plastic into large jute bags and carry it on foot to a plastic wholesaler, w stifies the activity. POEMS Field Notes 27 Designing for the Base of the P nd work within research paramarg Image Credit: Designing for the Base of the Pyramid, Patrick Whitney, Anjali Kelkar (2004)

104. 29 Enlightening conversations … Immerse. Observe. Engage. Image Credit: © Klara Lindner for Mobisol GmbH Berlin

105. 30 Enlightening conversations … Immerse. Observe. Engage.

106. 31 Enlightening conversations … Immerse. Observe. Engage. Image Credit: © Klara Lindner for Mobisol GmbH Berlin | http://www.gretchenchern.com/wp-content/uploads/2011/06/contextual_Aﬃnity.jpg

107. The Anatomy of an Interview 32after Michael Barry (d.school Stanford, Point Forward) and Aristotle dramatic structure exposition risingaction climax fallingaction resolution Intro Kick-oﬀ Build Rapport Grand Tour Reﬂection Wrap-up Intro Yourself Intro Project Evoke Stories Explore Emotions Question Statements

108. Let subjects tell their own story, and listen for the things that elicit emotion, cause them concern or frustration. "If you want to find out what people really need, you have to forget about your problems and worry about their lives." (Dale Carnegie) 34 Cast aside your Biases, Listen and Observe 01 Image Credit & Source: d.school Stanford

109. Let them relate their successes and failures. Stories encompass the implicit rules that govern and organize peoples lives and reveal what they find normal, acceptable and true. They reveal moral codes, sources of pride, shames, shoulds and should-nots. 35 Listen to People's Personal Stories 02 Image Credit & Source: d.school Stanford

110. Opportunities for innovation lie within the disconnect between action and words. 36 Contradictions between what People say and do 03 Image Credit & Source: d.school Stanford

111. People make do and work around the shortcomings of products and situations. In everyday life, we all come up with "work arounds," clumsy or clever, that we usually are totally unaware of. You must take note. 37 Watch for »Work Arounds« 04 Image Credit & Source: d.school Stanford

112. Needs open up possibilities, solutions constrain them. If you start with a solution then you may overlook the possibility of coming up with an entirely new and revolutionary product or service. 39 Distinguish between Needs and Solutions 05 Image Credit & Source: d.school Stanford

113. Your research may seem so routine and familiar that you feel there is nothing new to be learned. Boredom and frustration easily set in. Stay alert! The epiphanies and insights emerge from the nuances. 40 Look beyond the Obvious 06 Image Credit & Source: d.school Stanford

114. Beginners Mindset 15

115. Interview Preparation ‣ Brainstorm questions ‣ Discover themes ‣ Reﬁne and memorize questions ‣ Use prompts 41

116. Interview Preparation ‣ Brainstorm questions ‣ Discover themes ‣ Reﬁne and memorize questions ‣ Use prompts 41

117. Design Thinking Bootcamp: Day II Your work has only just begun …

118. If I had an hour to solve a problem and my life depended on the solution, I’d spend the first 55 minutes determining the proper question to ask, for once I know the proper question to ask, I could solve the problem in less than 5 minutes. Albert Einstein „ “ 2 Do we actually solve the problem we think we do? Problem Reframing: Point of View

119. 3 Define Blind men and elephant? IN PU T

120. 4 OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND POINT OF VIEW

121. The Knowledge Funnel 5 Mystery Heuristic Algorithm Code Image Credit: adapted from Martin, R. L. (2009). The Reliability Bias - Why Advancing Knowledge is so hard. & Design of Business: Why Design Thinking is the Next Competitive Advantage (pp. 33-56) Mcgraw-Hill Professional. 01100111001

122. Frame Creation: Deﬁning the »Right Problem« Archaeology Paradox Stakeholders Problem Arena Themes Frames Futures Transformations Connections 6 after Kees Dorst, 2012 (d.confestival Potsdam)

123. 7 Workspace @ d.school Potsdam Making Sense of the »mess of data«. Problem Reframing = Synthesis

124. 8 Making Sense of the »mess of data«. Problem Reframing: Tips & Tricks

125. 9 Composite characters – the shortcut to empathy. Persona Construction Image Credit: Cooper, A., & Reimann, R. M. (2003). About Face 2.0: The Essentials of Interaction Design (2nd ed.). Indianapolis: Wiley & Sons.

126. 10 Framing and re-framing of the problem. Point of View User + Need + Insight problem statement surprising anomaly

127. 11Image Credit: © 2011 General Electric Company (http://www.gehealthcare.com/promo/advseries/adventure_series.html) User: Kids with cancer. Need: Play and have fun. Feel like a normal child. Insight: Kids participate in everything once they perceive it as an adventure. “How might we turn MRI scans for children (fearing »medical treatment«) into an adventure?”

128. 12Image Credit: © Embrace (www.embraceglobal.org) User: Young moms in poor rural areas in developing countries. Need: Always carry baby close to body equals being a good mother. Insight: Low cultural acceptance in many countries to »leave babies alone« (e.g. in incubators). “How might we create an non-electrical infant incubator that keeps babies close to mother’s body?”

129. 13Image Credit: © Lynx Team @ MIT & RSID’s »Design that matters« course (http://designthatmatters.org/news/dtm-blog/2011/03/dtm_leads_ﬁrst.php) User: Kids equipped with hearing aids in rural india Need: Charge them easily without elictricity grid Insight: Families reject them due to increased theft risk of expensive devices and accessories “How might we design a solar charging system that reduces risk and perceived risk theft?”

130. 14 User: Stressed mother of kids Need: Finally some time to recover and relax Insight: Wants to do sth. for herself “How might we help Anna to relax more?”

131. 14 User: Stressed mother of kids Need: Finally some time to recover and relax Insight: Wants to do sth. for herself “How might we help Anna to relax more?”

132. 1 IN PU T Prototype Ideas made tangible and testable … Image Credits: © NASA (Gemini Mission 1965); Control Stick: Steve Jurvetson (jurvetson) @ Flickr (http://www.ﬂickr.com/photos/jurvetson/5227637637/sizes/l/in/photostream/)

133. Why Prototype? Gain empathy Explore Inspire Test 2 → get deeper understanding → build to think → catalyse inspiration → learn and reﬁne solutions

134. 3 OBSERVE IDEATE PROTOTYPE TESTPOINT OF VIEW UNDERSTAND PROTOTYPE

135. 4 Prototyped artifacts may come in many forms ... Prototyping Image Credit: © Klara Lindner for Mobisol GmbH Berlin

136. 5 Image Credit: Martin Jordan (http://www.service-design-berlin.de/) Prototyped artifacts may come in many forms ... Prototyping

137. 6 Prototyped artifacts may come in many forms ... Prototyping

138. 7 Prototyped artifacts may come in many forms ... Prototyping

139. 8 Image Credit: Elias Barrasch (http://www.blog.eliasbarrasch.de/) Prototyped artifacts may come in many forms ... Prototyping

140. HUMAN CENTERED BIAS TOWARDS ACTION SHOW DON’T TELL CRAFT CLARITY RADICAL COLLABORATION CULTURE OF PROTOTYPING & EXPERIMENTATION MINDFUL OF PROCESS 9

141. ProtoTypes Which aspects do you want to represent/test? Choose testing variable ‣ Looks-like ‣ Works-like ‣ Interacts-like ‣ Feels-like ‣ etc. 10

142. High »Mock-up« of the idea: representation as close as possible to the idea Middle Representation of aspects of the idea Low Conceptual representation Restricted Controlled Environment General Any user, any environment Partial Final user or environment Total Final user + environment Prototype Fidelity and Testing Context 11Image Credit: Embrace FIDELITY CONTEXTLEVEL “Make sure you are building the right »it« before you build it right”

143. High »Mock-up« of the idea: representation as close as possible to the idea Middle Representation of aspects of the idea Low Conceptual representation Restricted Controlled Environment General Any user, any environment Partial Final user or environment Total Final user + environment Prototype Fidelity and Testing Context 11Image Credit: Embrace FIDELITY CONTEXTLEVEL “Make sure you are building the right »it« before you build it right”

144. 12 Google Glass’ Lo-ﬁ Prototyping Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #1 Experience: Augmentation

145. 12 Google Glass’ Lo-ﬁ Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #1 Experience: Augmentation

146. 12 Google Glass’ Lo-ﬁ Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #2 Options Exploring: Gesture Control#1 Experience: Augmentation

147. 12 Google Glass’ Lo-ﬁ Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #2 Options Exploring: Gesture Control#1 Experience: Augmentation 45 MIN

148. 12 Google Glass’ Lo-ﬁ Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #3 Try & Iterate:Shape, Size, Weight #2 Options Exploring: Gesture Control#1 Experience: Augmentation 45 MIN

149. ½ HOUR 12 Google Glass’ Lo-ﬁ Prototyping 1 DAY Source: Tom Chi (Google X) @ TED (http://blog.ted.com/2013/02/01/google-glass-prototyped-using-binder-clips-and-clay/) #3 Try & Iterate:Shape, Size, Weight #2 Options Exploring: Gesture Control#1 Experience: Augmentation 45 MIN

150. You See: It’s no Rocket Science! 13

151. 1 IN PU T Iterate! Test! Ready for the ride? Image Credit: United States Library of Congress, Prints & Photographs Division, Photochrom Collection, [Circus Rings, Luna Park, Coney Island]

152. HUMAN CENTERED BIAS TOWARDS ACTION SHOW DON’T TELL CRAFT CLARITY RADICAL COLLABORATION CULTURE OF PROTOTYPING & EXPERIMENTATION MINDFUL OF PROCESS 2

153. No Sales Pitch! 3

154. How to Test … 1. Let your users experience the prototype 2. Observe their experience 3. Engage them 5

155. Advanced Design-driven Innovation Bootcamp Follow-up Session I

156. You want »definitions« - eh? Management Perspective ‣ “A way to instill customer-centricity and empathy [...], to solve complex problems [and a] methodology to foster exploration and experimentation.” (Mootee 2011, p.3) ‣ “A person or organization instilled with that discipline is constantly seeking a fruitful balance between reliability and validity, between art and science, between intuition and analytics, and between exploration and exploitation” (R. L. Martin 2009, p.62) Therefore “[d]esign thinking is the application of integrative thinking to the task of resolving the conflict between reliability and validity, between exploitation and exploration, and between analytical thinking and intuitive thinking. Both ways require a balance of mastery and originality” (ibid, p.165). ‣ “Design thinking is the way designers think: the mental processes they use to design objects, services or systems, as distinct from the end result of elegant and useful products. Design thinking results from the nature of design work: a project-based work flow around ‘wicked’ problems.” (Dunne & R. Martin 2006) ‣ Temporal working definition from a business background (Weatherhead School of Management): “Design is the process of finding and solving non-routine (wicked) problems, often with a focus on bringing new products or services to market. Design is the intentional assembly of systems with interacting parts to achieve some objective. Design is a collection of methods and techniques, often drawn from the fine arts, to creatively solve problems.” (Collopy 2009) 4

157. You want »deﬁnitions« - eh? Learning and Process Perspective ‣ “Design is the creation process through which we employ tools and language to invent artifacts and institutions. As society has evolved, so has our ability to design. [Design thinking as a process has] recognizable phases, and these, while not always in the same order, nearly always begin with analytic phases of search and understanding, and end with synthetic phases of experimentation and invention” (Charles Owen, as cited in Beckman & Barry 2007, p.27). → process of knowledge development, which has both analytical (ﬁnding and discovery) and synthetic (invention and making) elements and operates in both the theoretical and practical realm. Practice Perspective ‣ “Design thinking can be described as a discipline that uses the designer’s sensibility and methods to match people’s needs with what is technologically feasible and what a viable business strategy can convert into customer value and market opportunity, [it] converts need into demand.” (T. Brown 2008) 5

158. 2000‘s Innovation & Competitiveness 1990‘s Brand building 1980‘s Design Management 1970‘s The rise of Ergonomics 1960‘s Involving Industry 1950‘s Promoting the Nation „global competition and renewal“ „the China- phenomenon“ „total experience design – from concept to retail“ „our product portfolio is consistent“ „the user (be it a child or an elderly) is the most important“ „design as part of the industrial product development process“ „We got a prize in Milano!“ design as a innovation driver design for creating experiences for the customer design as a co-ordinator design for user understanding design as part of a team together with mechanics and marketing the designer as a creator 6 Design Practice and Design Management Perspectives adapted from Valtonen, A. (2007). Redeﬁning Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki. strategyvision roadmaps product deﬁnition entire product development process product aesthetics „styling“ typical role for the designer proximity to the market typical statement on design

159. 2000‘s Innovation & Competitiveness 1990‘s Brand building 1980‘s Design Management 1970‘s The rise of Ergonomics 1960‘s Involving Industry 1950‘s Promoting the Nation „global competition and renewal“ „the China- phenomenon“ „total experience design – from concept to retail“ „our product portfolio is consistent“ „the user (be it a child or an elderly) is the most important“ „design as part of the industrial product development process“ „We got a prize in Milano!“ design as a innovation driver design for creating experiences for the customer design as a co-ordinator design for user understanding design as part of a team together with mechanics and marketing the designer as a creator 6 Design Practice and Design Management Perspectives adapted from Valtonen, A. (2007). Redeﬁning Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki. strategyvision roadmaps product deﬁnition entire product development process product aesthetics „styling“ typical role for the designer proximity to the market typical statement on design Shared Value?

160. 2000‘s Innovation & Competitiveness 1990‘s Brand building 1980‘s Design Management 1970‘s The rise of Ergonomics 1960‘s Involving Industry 1950‘s Promoting the Nation „global competition and renewal“ „the China- phenomenon“ „total experience design – from concept to retail“ „our product portfolio is consistent“ „the user (be it a child or an elderly) is the most important“ „design as part of the industrial product development process“ „We got a prize in Milano!“ design as a innovation driver design for creating experiences for the customer design as a co-ordinator design for user understanding design as part of a team together with mechanics and marketing the designer as a creator 6 Design Practice and Design Management Perspectives adapted from Valtonen, A. (2007). Redeﬁning Industrial Design: Changes in the Design Practice in Finland (PhD Thesis). University of Art and Design, Helsinki, Helsinki. strategyvision roadmaps product deﬁnition entire product development process product aesthetics „styling“ typical role for the designer proximity to the market typical statement on design Shared Value? 2010’s

161. 7 Who WhatHow Who is our customer and what does he value? What value do we actually deliver, a.k.a. which business are we in? How to create, deliver and capture parts of that value? Know what solutions to build. Products & services, new meanings, new experiences Know for whom to build. Market Disclosing, User(s) segments, Individual needs Know how to proﬁtably implement this. Business models, Value capture mechanisms Examples: Observation and integration of, or adaption to current user practices (e.g. repurposes or hacks) Examples: Design discourse, design experiments, prototypes Examples: Existing tools and approaches for constructing new user/ experience journeys Core principles, practices, processes and tools of higher order design (e.g. heavy collaboration and co-creation, permanent interaction, validity-seeking systems thinking, etc.) Innovate Value by Design adapted from Sniukas, M. (2007). Reshaping Strategy: The Content, Process, and Context of Strategic Innovation.

162. 8 Design in Business -or- Business Design Why a HCD posture is the new competitive advantage IN PU T

163. Progression of Economic Value 10 Differentiated Undifferentiated CompetitivePosition Pricing NeedsofCustomers Relevant to Irrelevant to Market Premium Extract Commodities Make Goods Stage Experiences Guide Transformations Customization Customization Commoditization Commoditization Commoditization

164. 11 Differentiated Undifferentiated CompetitivePosition Pricing NeedsofCustomers Relevant to Irrelevant to Market Premium Extract Commodities Make Goods Stage Experiences Guide Transformations Customization Customization Commoditization Commoditization Commoditization Stages of Experience EXPERIENCE ? TRANSFORMATION PRODUCT SERVICE COMMODITY 1¢-2¢ Cup 5¢-25¢ Cup €1.00-€2.50 Cup €3.00-€4.50 Cup What’s next?

165. If you charge for Stuff, then you are in the commodity business. If you charge for tangible things, then you are in the goods business. If you charge for the activities you execute, then you are in the service business. If you charge for the time customers spend with you, then you are in the experience business. If you charge for the demonstrated outcome the customer achieves, then and only then are you in the transformation business. 12Image Credit: Joe Pine & Jim Gilmore (Source: http://www.strategichorizons.com) Pine & Gilmore (1999, p.194) „ “

166. 13 Perceived Customer Value = Functional Benefits – Financial Cost inside » « outside How do you strategize? TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies? What is our current business model? What else could we oﬀer? What other channel could we use? What customers would we sell to? adapted from Peer Insight. (2007). Seizing the White Space: Innovative Service Concepts in the United States, Technology Review. Study, Helsinki: Tekes, the Finnish Funding Agency for Technology and Innovation.

167. 13 Perceived Customer Value = Functional Benefits – Financial Cost inside » « outside How do you strategize? TRADITIONAL INSIDE-OUT VALUE CHAIN What are our core competencies? What is our current business model? What else could we offer? What other channel could we use? What customers would we sell to? CUSTOMER EXPERIENCE OUTSIDE-IN VALUE CHAIN What business design would create defensible profits? What customers do we want? What are their priorities? What do we need to execute that design? What could we offer? What ecosystem exists to meet those priorities? Perceived Customer Value = Emotional Benefit – Hassle Factor adapted from Peer Insight. (2007). Seizing the White Space: Innovative Service Concepts in the United States, Technology Review. Study, Helsinki: Tekes, the Finnish Funding Agency for Technology and Innovation.

168. 14BOTTOM-UP TOP-DOWN INSIDE-OUT OUTSIDE-IN Value Creation & Innovation Opportunies Human-centric Innovation Business- & Technology-driven Innovation (Latent) Needs Discovery Alternative Practices & Solutions Business Opportunities Business Opportunities (Organisational, Technological) Internal Change Strategy & Brand Environmental Factors Market Changes Competitors Moves Staﬀ Abilities Staﬀ Experience Dispersed Knowledge Users’ Value CreationProviders Value Facilitation Do we talk about the same thing here? How do you strategize? Internal Change External Change

169. Reliability Bias? 15 Business People Designer 100% Reliability 100% Validity Reliability vs. Validity a fundamental predilection gap 50/50 Mix Martin, R. L. (2009). Design of Business: Why Design Thinking Is the Next Competitive Advantage. Mcgraw-Hill Professional.

170. The (Danish) Design Ladder 16 Non-design Design is a negligible part of the product development process and usually performed by other professionals than the designer. 1st step Design as styling Design is seen solely as relating to the physical form of the product. This can be the work of a designer, but usually created by others. 2nd step Design as process Design is a method integrated early into the development process. The production outcomes requires contributions from several specialists. 3rd step Design as innovation The designer works closely alongside to the company’s management on complete or partial renewal of the total business concept. 4th step SVID. (2003). 10 Points. Attitudes, Profitability and Design Maturity in Swedish Companies (Study). Designs økonomiske effekter” (the economic effects of design). Stockholm: Swedish Industrial Design Foundation.

171. Correlation of Design Activities and Average Growth in Turnover 17 SVID. (2003). 10 Points. Attitudes, Profitability and Design Maturity in Swedish Companies (Study). Designs økonomiske effekter” (the economic effects of design). Stockholm: Swedish Industrial Design Foundation. Design as innovation, 9.0% Design as process, 8.9% Design as styling, 6.5% Non-design, 7.4% 0 1 2 3 4 5 6 7 8 9 10

172. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuﬀ, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets

176. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuﬀ, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Continuous Incremental

177. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuﬀ, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Continuous Incremental Sustaining Evolutionary

178. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuﬀ, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Continuous Incremental Sustaining Evolutionary

179. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuﬀ, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Transformational 10% Adjacent 20% Core 70% Continuous Incremental Sustaining Evolutionary

180. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuﬀ, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Transformational 10% Adjacent 20% Core 70% Continuous Incremental Sustaining Evolutionary 10%

181. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuﬀ, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Transformational 10% Adjacent 20% Core 70% Continuous Incremental Sustaining Evolutionary 10% 20%

182. Innovation Ambition Be clear about your innovation intent. Balance your innovation portfolio. 18 HOWTOWIN WHERE TO PLAY adapted from Nagji, B., & Tuﬀ, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. May 2013. New markets and customers Create new markets/ target new customer needs Extension / entering of adjacent markets and customers Existing markets and customers Transformational Adjacent Core Current capabilities Use existing products and assets New capabilities Add incremental products and assets New business models Develop new products and assets Breakthrough Revolutionary Radical Game-changing etc. … Transformational 10% Adjacent 20% Core 70% Continuous Incremental Sustaining Evolutionary 10% 20% 70%

183. Innovation ROI: »Black Hole« vs. Options-oriented Investment 19 -€ +€ CumulativeCashFlow adapted from McGrath, R. G. (2010). Business Models: A Discovery Driven Approach. Long Range Planning, 43(2-3), 247–261.; McGrath, R. G., & Macmillan, I. C. (2009). Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. Harvard Business School Press. Time Downside risk unlimited

184. Innovation ROI: »Black Hole« vs. Options-oriented Investment 20 -€ +€ CumulativeCashFlow adapted from McGrath, R. G. (2010). Business Models: A Discovery Driven Approach. Long Range Planning, 43(2-3), 247–261.; McGrath, R. G., & Macmillan, I. C. (2009). Discovery-Driven Growth: A Breakthrough Process to Reduce Risk and Seize Opportunity. Harvard Business School Press. Time Downside risk contained at any given time

187. Business Model Management 21 Company Can Company Will Company Should COMPANY WILL: - Business idea - Leadership preferences - Leadership vision - Goal - Declaration of intent COMPANY SHOULD: - Competitive situation - Client side - Supplier side - Distribution situation - Entourage factors COMPANY CAN: - Economy - Employees - Production facility - Flexibility - Core competencies Area of position change Primary area of effort Danger zone Area of competency development Von Rosing, M., Rosenberg, A., Chase, G., Rukhshaan, O., & Taylor, J. (2011). Applying real-world BPM in an SAP environment (1st ed.). Bonn; Boston: Galileo Press.

188. Blue Ocean: Four Actions Framework 22 ELIMINATE Which of the factors that the industry takes for granted should be eliminated? CREATE Which factors should be created that the industry has never oﬀered? RAISE Which factors should be raised well above the industry‘s standard? REDUCE Which factors should be reduced well below the industry‘s standard? A NEW VALUE CURVE Image Credit: Kim, W.C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competiton Irrelevant (illustrated ed.). Boston, Mas: Mcgraw-Hill Professional

189. Key Partners Key Activities Value Proposition Relationships Channels Revenue Streams Key Resources Cost Structure Customer Segments Movies HardDisk Dolby5.1 DVD Connectivitiy Price CPU GPU MotionControl UserReach Games Ux/FunFactor Ecosystem ValueLevel&Price Nintendo Wii Microsoft Xbox 360 Sony PS3 Eliminate/Reduce Costs Create/Raise Value 23 Strategy Canvas: Nintendo Wii (in 2007)

190. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS eliminate reduce create raise unchangedNintendo Wii (in 2007)

191. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics new proprietary technology state-of-the-art chip development console subsidies eliminate reduce create raise unchangedNintendo Wii (in 2007)

192. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics new proprietary technology state-of-the-art chip development console subsidies royalties from game developers game developers retail distribution game developers eliminate reduce create raise unchangedNintendo Wii (in 2007)

193. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers game developers retail distribution game developers eliminate reduce create raise unchangedNintendo Wii (in 2007)

194. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics STMicro- electronics for MEMS accelerometers new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers casual gamers game developers families girls retail distribution game developers eliminate reduce create raise unchangedNintendo Wii (in 2007) motion control technology alternative game concept research motion controlled gaming physical activity, social get-together sport, workout, physical recovery fun factor, socialexperience »family

195. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics STMicro- electronics for MEMS accelerometers new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers hardwaresales profit casual gamers game developers families girls retail distribution game developers standard component hardware manufacturers eliminate reduce create raise unchangedNintendo Wii (in 2007) motion control technology alternative game concept research motion controlled gaming retail store involvement physical activity, social get-together sport, workout, physical recovery fun factor, socialexperience »family

196. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics STMicro- electronics for MEMS accelerometers new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers hardwaresales profit casual gamers game developers families girls retail distribution game developers standard component hardware manufacturers eliminate reduce create raise unchangedNintendo Wii (in 2007) motion control technology alternative game concept research motion controlled gaming retail store involvement physical activity, social get-together sport, workout, physical recovery fun factor, socialexperience »family Feasibility Viability Desirability

197. KP KA VPVP CR CSKP KR VPVP CH CS CSCSCS RSRSRS male »hardcore gamers« passive immersion with high-end performance and graphics STMicro- electronics for MEMS accelerometers new proprietary technology state-of-the-art chip development console subsidies technology development costs console production costs royalties from game developers hardwaresales profit casual gamers game developers families girls retail distribution game developers standard component hardware manufacturers eliminate reduce create raise unchangedNintendo Wii (in 2007) motion control technology alternative game concept research motion controlled gaming retail store involvement physical activity, social get-together sport, workout, physical recovery fun factor, socialexperience »family Feasibility Viability Desirability Best Sustainable Equilibrium

198. 25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) Key Partners Key Activities Value Proposition Relationships Channels Revenue Streams Key Resources Cost Structure Customer Segments

199. 25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) Key Partners Key Activities Value Proposition Relationships Channels Revenue Streams Key Resources Cost Structure Customer Segments Eliminate/Reduce Costs Create/Raise Value

200. 25Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl) Key Partners Key Activities Value Proposition Relationships Channels Revenue Streams Key Resources Cost Structure Customer Segments Eliminate/Reduce Costs Create/Raise Value Best Sustainable Equilibrium max. value capture for the company max. valuefor the user

201. 28 FIRM Business Model A Business Model B Business Model C Business Model D BUSINESS MODEL OPTIONS Strategy: plan of which business model to adopt Tactics: competitive choices enabled by each business model Strategy stage Tactics stage Tactical set C Tactical set D Tactical set B Tactical set A Business Model »vs.« Strategy: Business Model Portfolio Casadesus-Masanell, R., & Ricart, J. E. (2010). From Strategy to Business Models and onto Tactics. Long Range Planning, 43(2-3), 195–215.

202. Core Value Proposition Complementary Offerings Supplying and Enabling Network Other Stakeholders ®® TM Apple’s Business Ecosystem 31 Higher Margins via Apple Price Premium Lowest Production Costs Goods & Services Money & Credits Information Intangible Value High Volume and Planning Certainty Manufacturing Knowledge Reputation ??? IP royalties Seamless User Experience Enriched User Experience App Purchases Comission Sales Platform Apple Platform New Business Ideas Higher Margins : Apple Price Premium Broad Service Station Covering Technical and Sales Training Digital Sales Channel with DRM and wide Spread Media Delivery ??? IP royalties / Commission Infrastructure Management Service Contract Sponsoring / Discounts Apple on Campus Bulk Purchases Reputation and Awareness Personal Data Price Premium (Hardware, Media and App Sales)

203. Perspectives on Value Levels of Value Sociology Ecology Psychology Economy Proﬁt Stability Wealth Core Values Shared Drivers Wellbeing Social Responsibility Reciprocity Meaningful Life Sustainability Livability of the Environment Value for Money Happieness Belonging Eco- Eﬀectiveness Eco- Footprint Soc iety Ecosy stem Organi sation Us er Experience Doing Well Doing good Transformation Value Proposition(s)

204. Perspectives on Value Levels of Value Sociology Ecology Psychology Economy Proﬁt Stability Wealth Core Values Shared Drivers Wellbeing Social Responsibility Reciprocity Meaningful Life Sustainability Livability of the Environment Value for Money Happieness Belonging Eco- Eﬀectiveness Eco- Footprint Soc iety Ecosy stem Organi sation Us er Value Proposition(s) Experience Doing Well Doing good Transformation

205. Perspectives on Value Levels of Value Sociology Ecology Psychology Economy Proﬁt Stability Wealth Core Values Shared Drivers Wellbeing Social Responsibility Reciprocity Meaningful Life Sustainability Livability of the Environment Value for Money Happieness Belonging Eco- Eﬀectiveness Eco- Footprint Soc iety Ecosy stem Organi sation Us er Value Proposition(s) Experience Doing Well Doing good Transformation

206. Design has to be conceived as … design for, design with, and design by … users and other »interpreters«. Then it creates … value for, value with, and value from … users and other stakeholders. 34 Sounds logic? It often seems it isn’t … Innovation

207. 35 Sounds logic? It often seems it isn’t … Participatory Design User-Centered Design Design + Emotion Critical Design Generative Design Research DESIGN-LED RESEARCH-LED EXPERT MINDSET users” seen as subjects (reactive informers) “ PARTICIPATORY MINDSET users” seen as partners (active co-creators) “ Human Factors + Ergonomics Usability Testing Applied Ethnography Lead-User Innovation Contexual Inquiry Cultural Probes Generative Tools “Scandinavian” Methods adapted from Sanders, L. (2002). From User-Centered to Participatory Design Approaches. In J. Frascara (Ed.), Design and the Social Sciences: Making Connections (1st ed., pp. 1–8). London: Taylor Francis.

208. 46 Some References this Workshop/Presentation was based on: Beckman, S. L., & Barry, M. (2007). Innovation as a Learning Process: Embedding Design Thinking. California Management Review, 50(1), 25–56. Boland Jr., R., & Collopy, F. (2004). Managing as Designing (1st ed.). Stanford: Stanford Business Books. Brown, T. (2009). Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation: How Design Thinking Can Transform Organizations and Inspire Innovation. New York: Harper Business. Buchanan, R. (1992). Wicked Problems in Design Thinking. Design Issues, 8(2), 5–21. Cooper, A., Reimann, R., & Cronin, D. (2007). About Face 3: The Essentials of Interaction Design (3rd ed.). Wiley. Kelley, T., & Littman, J. (2001). The Art of Innovation: Lessons in Creativity from IDEO, America’s Leading Design Firm (1st ed.). New York: Crown Business. Kelley, T., & Littman, J. (2005). The Ten Faces of Innovation: IDEO’s Strategies for Defeating the Devil’s Advocate and Driving Creativity Throughout Your Organization. New York: Doubleday. Kimbell, L. (2009, September). Beyond Design Thinking: Design-as-practice and designs-in-practice. Presentation Paper, Saïd Business School, University of Oxford. Krippendorff, K. (2005). Semantic Turn: New Foundations for Design. Boca Raton, Fla.; London: CRC. Kuhn, T. (2012). The Structure of Scientific Revolutions: 50th Anniversary Edition (50th anniversary ed.). University of Chicago Press. Kumar, V. (2012). 101 Design Methods: A Structured Approach for Driving Innovation in Your Organization (1. Auflage.). John Wiley & Sons. Kumar, V., & Whitney, P. (2007). Daily life, not markets: customer-centered design. Journal of Business Strategy, 28(4), 46–58. Liedtka, J. (2000). In Defense of Strategy as Design. California Management Review, 42(3), 8–30. Liedtka, J., & Ogilvie, T. (2011). Designing for growth : a design thinking tool kit for managers. New York: Columbia University Press - Columbia Business School Publishing. Martin, R. L. (2009a). The Opposable Mind: How Successful Leaders Win Through Integrative Thinking. Mcgraw-Hill Professional. Martin, R. L. (2009b). Design of Business: Why Design Thinking Is the Next Competitive Advantage. Mcgraw-Hill Professional. Nagji, B., & Tuff, G. (2012). Managing Your Innovation Portfolio - Harvard Business Review. Harvard Business Review. Retrieved May 1, 2013, . Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st Edition.). Springer London. Owen, C. L. (2005a, May 14). Societal Responsibilities. - Growing the Role of Design. . International Conference on Planning and Design, National Cheng Kung University Tainan, Taiwan. Owen, C. L. (2005b, October 21). Design Thinking: What It Is, Why It Is Different, Where It Has New Value. . Presentation Paper, Gwanju, Korea. Owen, C. L. (2007). Design Thinking: Notes on its Nature and Use. Design Research Quarterly, 2(1), 16–27. Simon, H. A. (1996). Sciences of the Artificial (0003 ed.). The Mit Press. Suri, J. F. (2005). Thoughtless Acts?: Observations on Intuitive Design (Ideo, Ed.). Chronicle Books. Ulla Johansson, J. W. The emperor’s new clothes or the magic wand? The past, present and future of design thinking. . Conference paper - peer reviewed, Verganti, R. (2009). Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean. Harvard Business Press. Wetter Edman, K. (2011, September). Service Design - A Conceptualization of an emerging Practice. Licentiate Thesis (PhD), Göteborg: Göteborgs Universitet. Konstnärliga Fakulteten. Retrieved November 4, 2011, from http://gupea.ub.gu.se/handle/2077/26679.

209. 47 Credits & Attributions This slideset was developed via fruitful exchanges of ideas, thoughts and photo material from and with the following organizations and people: LaunchLabs® Berlin Softgarden® Berlin Service Design Berlin Schach&Matt® Kira Kraemer Klara Lindner Mia Sun Kjaergarrd Elias Barrasch Martin Jordan Holger Rhinow

210. Design-driven strategic business planning 48Jan Schmiedgen // Fidicinstr. 41 // 10965 Berlin // GERMANY // +49 173 3 83 15 26 // kontakt@schmiedgen.eu

Design Thinking - Bootcamp

Estás leyendo una previsualización.

Eche un vistazo a continuación

Design Thinking - Bootcamp

Más Contenido Relacionado

Presentaciones para usted (20)

A los espectadores también les gustó (20)

Similares a Design Thinking - Bootcamp (20)

Más de Jan Schmiedgen (20)

Más reciente (20)

Design Thinking - Bootcamp